The I.M.F. “was in disarray,” said Douglas Rediker, who then represented the United States on the fund’s executive board. “One of the first things she did was restore the reputation, integrity and confidence of the I.M.F.,” said Mr. Rediker, now chairman of International Capital Strategies, a consulting firm.
Ms. Lagarde is known as a boss who scolds employees when they check their mobile phones during meetings. But she is also more informal than Mr. Draghi. During a visit to the European Central Bank in June, probably before she realized she could become president, she bantered easily with lower-level employees, according to a person who was present.
Ms. Lagarde once said she tried to do something for women every day, and can be expected to address gender imbalance at the central bank. Just two of the 25 members of the governing council are women.
Ms. Lagarde, who was the French finance minister before leading the I.M.F., may rely on her political skills to get eurozone governments to do more of the heavy lifting if there is another crisis, Mr. Rediker and others said.
That’s important because there is probably not that much more that the European Central Bank can do if the eurozone sinks into recession. Benchmark interest rates are at record lows. Countries like Germany that are in good financial shape could stimulate the eurozone economy by spending more on infrastructure. Eurozone leaders could agree on a common deposit insurance fund to strengthen the banking system.
“Everything in Europe, whether tacitly or overtly, has a political element to it,” Mr. Rediker said. “Christine Lagarde’s skills might be ideal for the E.C.B. at the current moment.”
Article source: https://www.nytimes.com/2019/07/16/business/christine-lagarde-european-central-bank.html?emc=rss&partner=rss
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